Equity, Bottom-up Analyst, Investics Research

Sameer Taneja

A buy-side analyst with over 15 years of experience investing in Asian markets and specializing in the mid-small cap space, emphasizing value investing in companies with good free cash flows/dividends and long-term holding horizons. 
Exempt Financial Adviser (EFA) under CrossASEAN Research Pte Ltd. It is important to note that the information provided by Investics Research is based on publicly available data and own knowledge, which has been gathered and analyzed from a variety of sources. While every effort has been made to ensure the accuracy and completeness of the information provided, it is not guaranteed to be free from errors or omissions. All forecasts and estimates are based on information that has been obtained from public sources that are considered to be reliable. The sources include but are not limited to, company announcements, exchange filings, presentations, etc. Investics does not guarantee the accuracy and completeness of the forecasts, estimates, and/or other information.

Equity, Bottom-up Analyst

Fortescue and Ore Price, Interesting Divergence

Kelusa Asia Focus Funds

Equity Bottom-Up

<p>Historically,  iron ore prices and stock prices have been very correlated. This correlation tends to have short term breakdowns, but over the longer term remains intact. I think we are at that point now where stocks are pricing in an iron ore price higher than the current spot.  THE REASON, is the street is assuming lower costs for the iron ore stocks and prices bouncing into end of year restocking but not factoring in a deflationary spiraling of prices. There is a fairly good probability of price dropping a further 15%-20% or more  from here.</p>

Historically,  iron ore prices and stock prices have been very correlated. This correlation tends to have short term breakdowns, but over the longer term remains intact. I think we are at that point now where stocks are pricing in an iron ore price higher than the current spot.  THE REASON, is the street is assuming lower costs for the iron ore stocks and prices bouncing into end of year restocking but not factoring in a deflationary spiraling of prices. There is a fairly good probability of price dropping a further 15%-20% or more  from here.

Fortescue Metals

Where Is Fortescue Heading ?